Liverpools cash woes revealed - Losing 1 mill a week

Big Cox

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For the year ending July 2009, Liverpool made a annual loss of 54.8 mill, up by 34% on the previous year. This is taking into account such things as increased prize money, highest TV money in the clubs history at 74 mill (will decrease by about 40% with no CL lower finish etc). Bank debt of 351 million, and debts of 144 mill owed to Hicks and Gillet. Over 40 mill was spent on servicing the clubs debts

Entirity of the Sky money goes towards paying the clubs wage bill with no players having Champs League clauses in the wage deals they have. Auditors have expressed concerns over whether Liverpool can continue operations recommending they get rid of over 40% of the clubs assets/lower wage bill by 40%.

Quite simply its a matter of when and not if Liverpool are faced with administration based on these figures. Not even Abu Dhabi would take on debt levels this high.

Declining assets, reduced income, accelerated costs. Its a grim picture for Liverpool
 

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Big Cox

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To compare it with West Hams situation before Gold and Sullivan. Liverpool have quadruple the debt but only triple the revenue/cash flow into the club. And this is all based on the ups Liverpool had in the previous years. Take into account this seasons downfall and you would suspect Liverpools running debt for 2009-10 to hit around 70 mill and if changes arnt made around 80 mill+ come 2010-2011.

Liverpool fans are ignorant and comparing themselves to well Man United and saying well they have high debt why cant we. Difference is Man United service the debt they have and fairly comfortably too. Based on the auditors findings Liverpool are struggling to service the debt they do have. They compare themselves to Man United (who do have a fair amount of interest free loans ala Real Madrid) when a more realistic example is West Ham pre Gold and Sulluvans takeover/rescue package
 

r dub 19

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#6
Just sell everyone they are over as far as being title contenders for the next 5 years anyway.
 
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#7
Well someone could jump in ala City and we'd probably be fine.

If we'd been bought out earlier, stadium built earlier etc we'd probably be in a better situation, but muppet owners (thanks rick parry) coinciding with globally ****ed finances and some pisspoor onfield performances have left us here.

Be an interesting year or so. If we dont get bought out we could be in real strife but I mean United manage to keep plowing on despite massive debt (although they of course havan extra 30K seats and Champions league football, which can always be handy).
 

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Well someone could jump in ala City and we'd probably be fine.

If we'd been bought out earlier, stadium built earlier etc we'd probably be in a better situation, but muppet owners (thanks rick parry) coinciding with globally ****ed finances and some pisspoor onfield performances have left us here.

Be an interesting year or so. If we dont get bought out we could be in real strife but I mean United manage to keep plowing on despite massive debt (although they of course havan extra 30K seats and Champions league football, which can always be handy).
When was this suppose to happen? If it was during GFC you would of been f****
 
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When was this suppose to happen? If it was during GFC you would of been f****
We've had varying plans for a new ground since abou 03/04 or so, and new ones were revealed a couple of years ago, and what with the massive debt thanks to the owners and the GFC, **** all has been done to the Stanley Park site we planned on building on.
 

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#11
One of many major football clubs with an unsustainable business model. If United hadn't won their titles in the last 4 years do you think they would've been able to reduce their d/e from over 80%??!!

http://www.independent.ie/sport/soc...-era-will-seem-like-a-golden-age-2173371.html

The new chairman Martin Broughton has had to appear before the Premier League to give a guarantee, which had to be backed up by the banks, that Liverpool will be able to fulfil their fixtures next season (anyone who saw Liverpool's performance in Portsmouth this season may question if that guarantee was given last season). Yet some people cling to the view that Liverpool need simply to sign a new full-back. There is no quick-fix for Liverpool. There may be no slow-fix either.
Good read... perhaps not if you're a scouser.
 

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DBAH0

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#12
Off topic but related with Liverpool, they've been linked with MON taking over for Benitez today.

Probably the best they can hope for in terms of a replacement for Rafa I would have thought.

Mourinho isn't exactly gonna come knockin considering the current financial situation obviously.
 
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#13
Liverpool fans are ignorant and comparing themselves to well Man United and saying well they have high debt why cant we. Difference is Man United service the debt they have and fairly comfortably too.
Er, no. It'll be us next.

Last year's figures were artificially high because of the BIG-money sale of Cristiano (plus the big cut on his wages) and no really big-money replacement, also the new shirt deal, getting most of the cash up front on a five-year or so deal means there's no further incoming from that source either.

The bond issue has swept it under the carpet for now, but it could well come back with big ****ing knobs on, even if we do win the league for the next 365 years.

Our debt to expenditure is nothing like the percentage of pool's, true, but the numbers we're talking about are so eye-wateringly huge that's not much of a comfort.

Hoping Broughton's "guarantee" isn't like Benítez's guarantee of champions league footy. Schadenfreude is one thing, but I wouldn't wish this on anyone, not even Liverpool.
 

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Er, no. It'll be us next.

Last year's figures were artificially high because of the BIG-money sale of Cristiano (plus the big cut on his wages) and no really big-money replacement, also the new shirt deal, getting most of the cash up front on a five-year or so deal means there's no further incoming from that source either.

The bond issue has swept it under the carpet for now, but it could well come back with big ****ing knobs on, even if we do win the league for the next 365 years.

Our debt to expenditure is nothing like the percentage of pool's, true, but the numbers we're talking about are so eye-wateringly huge that's not much of a comfort.

Hoping Broughton's "guarantee" isn't like Benítez's guarantee of champions league footy. Schadenfreude is one thing, but I wouldn't wish this on anyone, not even Liverpool.
Even still your loans are structured differently. Some of them are interest fee. Some arnt even due repayment for another 20 years. Being the biggest club in the world has its perks in the banking world I think you will find. Glazier and co have loaded the club with debt but have done so with fantastic precision
 

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You should. Would rather be friends than the enemies with the movers and shakers. Done wonders for Barca and Real Madrid. May do wonders for your lot too
 

Big Cox

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The last I saw of these "movers and shakers" they were moving towards world governments shaking buckets. Friends like those, who needs multi-billion dollar cash losses?
They arnt all bad you know. Some of them do actually know what they are doing.
 

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#19
For the year ending July 2009, Liverpool made a annual loss of 54.8 mill, up by 34% on the previous year. This is taking into account such things as increased prize money, highest TV money in the clubs history at 74 mill (will decrease by about 40% with no CL lower finish etc). Bank debt of 351 million, and debts of 144 mill owed to Hicks and Gillet. Over 40 mill was spent on servicing the clubs debts

Entirity of the Sky money goes towards paying the clubs wage bill with no players having Champs League clauses in the wage deals they have. Auditors have expressed concerns over whether Liverpool can continue operations recommending they get rid of over 40% of the clubs assets/lower wage bill by 40%.

Quite simply its a matter of when and not if Liverpool are faced with administration based on these figures. Not even Abu Dhabi would take on debt levels this high.

Declining assets, reduced income, accelerated costs. Its a grim picture for Liverpool
Perhaps, but they may be swayed by the oppotunity to be associated with a brand with genuine global appeal. Liverpool is second only to Man U in that regard, which is what sets them aside from the examples of Leeds and Portsmouth.

A very interesting 12 months if coming up, but I certainly wouldn't write Liverpool off. Irrespective of the the debt it has accrued, it remains a club with enormous economic potential for any prospective owner.
 

Big Cox

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Perhaps, but they may be swayed by the oppotunity to be associated with a brand with genuine global appeal. Liverpool is second only to Man U in that regard, which is what sets them aside from the examples of Leeds and Portsmouth.

A very interesting 12 months if coming up, but I certainly wouldn't write Liverpool off. Irrespective of the the debt it has accrued, it remains a club with enormous economic potential for any prospective owner.
AHAHAHAHHAHAHAHAHAHAHHAHAHA. Funniest thing ive heard all year. Thanks for the LOLs.

Without Champs League football your club has as much global appeal as West Ham im afraid. I mean atleast we got Green Street Hooligans to bludge off :D.

Forget prize money etc. Losing Champs League footy hurt the brand long term more than the clubs finances. Id say atm global appeal in order is

1. Man United
2. Real Madrid
3. Barca
4. Bayern Munich
5. Inter

Liverpool figuring about 10-15th. Below Arsenal and just ahead of Tottenham
 

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#21
AHAHAHAHHAHAHAHAHAHAHHAHAHA. Funniest thing ive heard all year. Thanks for the LOLs.
Glad to see I can bring a smile to your dial, but to care to explain why you refute the claim I made? Which EPL club, aside from Man United, has a larger global profile than Liverpool? And please don't make me laugh by suggesting Chelsea, who's popularity in the most lucrative market of all (East Asia) - at least up to this point in time - is just not in the same league.
 

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#22
Perhaps, but they may be swayed by the oppotunity to be associated with a brand with genuine global appeal. Liverpool is second only to Man U in that regard, which is what sets them aside from the examples of Leeds and Portsmouth.

A very interesting 12 months if coming up, but I certainly wouldn't write Liverpool off. Irrespective of the the debt it has accrued, it remains a club with enormous economic potential for any prospective owner.
Global appeal? United and R.Madrid are ****ing miles ahead of anyone else.

You're right in the sense that Liverpool have a long history to draw upon for marketability but to suggest they're right at the top is ludicrous.

http://www.theoffside.com/world-foo...nds-teams-athletes-events-and-businesses.html
Forbes Top 10 Most Valuable Sports Team Brands
Remember this is the value of the brand, not of the actual team. Forbes describes it specifically as “The portion of team value not attributable to market demographics and league.” So you couldn’t buy Real Madrid for $245 million, in case you were planning to.
1. Man Utd, $270 million
2. New York Yankees, $266m
3. Real Madrid, $245m
4. Dallas Cowboys, $208m
5. Bayern Munich, $200m
6. Arsenal, $195m
7. Milan, $175m
8. Barcelona, $170m
9. New York Mets, $159m
10. Boston Red Sox, $157m
Not even in the top 10 buddy
 

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Godzke

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#24
For actual valuations... see here

2010 Forbes’ Ranking:

1. Manchester United: team value=$1,835 Million (£1,114m) / 2009:#1
Man Utd is the richest club in the world, thanks to shrewd marketing to a worldwide fan base. The Red Devils have won 18 English league titles 10 since the start of the Premiership in 1993, but continued dominance of English soccer has not endeared the Glazers, the U.S. billionaire family that bought the club in 2005, to some die-hard fans who now want to buy them out.

2. Real Madrid: team value=$1,323 Million (£803m) / 2009:#2
Spain’s most successful team, and, with a record nine European Champions Cups, arguably Europe’s-and perhaps the world’s-most storied soccer club. Long success on the field, immense financial resources and a history of acquiring superstars makes Real Madrid a magnet for players and fans alike.

3. Arsenal: team value=$1,181 Million (£717m) / 2009:#3
Originally a team of munitions workers from southeast London before moving to north London, the club’s most successful period was in the 1930s, when it won five English league titles and two cups. Now under the guidance of Frenchman Arsène Wenger, Arsenal finished in the top two of the English league for eight straight seasons but has yet to bring a trophy home to its new Emirates stadium.

4. Barcelona: team value=$1,000 Million (£607m) / 2009:#7
Fiercely proud flag bearers for Catalonia, Barca perennially battles with archrival Real Madrid to be the country’s top team. It has won the Spanish cup more times than any other team and is also the only club to have played in every European Cup since the competition started in 1955. It has often struggled in the Spanish league, winning that title only 19 times, although nine of those have been since 1990. The current side is one of the most electrifying in Europe.

5. Bayern Munich: team value=$990 Million (£601m) / 2009:#4
Long a powerful force in German football, Bayern Munich’s golden age was in the late 1960s to mid-1970s, when the team, led by Franz Beckenbauer along with striker Gerd M*ller and goalkeeper Sepp Maier, won three successive European Cups from 1974 through 1976. The current team remains a perennial force in Europe, if not consistently top-tier. The club also has one of Europe’s most dramatic stadiums.
Business of soccer also investigates the performances of the five richest clubs in Europe (Manchester United, Real Madrid, Arsenal, Barcelona and Bayern Munich).
 

Big Cox

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Glad to see I can bring a smile to your dial, but to care to explain why you refute the claim I made? Which EPL club, aside from Man United, has a larger global profile than Liverpool? And please don't make me laugh by suggesting Chelsea, who's popularity in the most lucrative market of all (East Asia) - at least up to this point in time - is just not in the same league.
Arsenal have you covered by a mile. Its a tight run race with Chelsea. For the lack of marketability they have in Asia they have it in spades in Europe, Africa and elsewhere. Chelsea are a Champs League club you are not. Chelsea as of today have you covered but only just. Itd put you 4th as far as EPL clubs go with Tottenham and Man City set to pounce. A matter of when and not if they take your mantle.

Bayern Real Barca have you covered. In time the Russian Premier League will gain more limelight and clubs like CSKA Moscow will come knocking too. You were a big fish in a small pond. Now your just a big fish in the ocean. A ocean your getting lost in
 
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